Steel rebar futures remained above CNY 3,070 per ton, near two-week highs, following China's announcement of measures to curb steelmaking capacity in key regions to rebalance supply and demand.

• Policy Measures: Beijing proposed a stricter capacity swap plan, restricting new steel capacity in key regions, transferring capacity from non-key to key areas, or reallocating capacity among key zones.
• Market Impact: The move has supported steel prices and improved profit margins, boosting demand for iron ore and other inputs.
• Domestic Context: China continues to face weak domestic demand amid a prolonged property downturn, causing supply-demand imbalances and pressure on steel margins.
• Trade Developments: Investors also monitored potential trade progress as China and the US agreed on a framework for a possible deal to be finalized by Presidents Trump and Xi this week, covering key issues.

The policy is seen as an attempt to stabilize the steel market while managing structural overcapacity challenges in the sector.